1:1 & 2:1 Bonus Issues: 2 Smallcap Edible Oil Stocks To Trade Ex-Bonus On March 15; Are You Invested?

Two smallcap stocks engaged in FMCG products, especially in edible oils, will be in focus during the trading week from March 11th to March 15th. The two companies are Gujarat Ambuja Exports and MK Proteins. These two stocks have declared bonus issues in the ratio of 1:1 and 2:1 for which they will be ex-bonus on March 15.

Bonus shares are issued in a certain proportion only to the existing shareholders free of cost. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

Gujarat Ambuja Exports Bonus Issue:

On BSE, Gujarat Ambuja Exports share price ended at Rs 389.95 apiece with market cap of Rs 8,942.93 crore. YTD, the company's stock surged over 7%, but in a year, the upside was over 55.4%.

Gujarat Ambuja will turn ex-bonus on March 15, ahead of its record date of March 16 for issuance of bonus shares and the book closure earlier decided by the Company is withdrawn.

It said the members whose names appear (a) as beneficial owners in the statement(s) furnished by the Depository(ies) and (b) as members in Register of Members of the Company as on the close of business hours on Record Date would be entitled to the issuance of Bonus equity shares of the Company in the proportion of 1:1 i.e. 1 (One) new fully paid-up Bonus equity share of Rs. 1/- (Rupee One only) each for every 1 (One) existing fully paid-up equity share of Rs. 1/- (Rupee one only) each, subject to the approval of the Members of the Company that is being obtained through Postal Ballot.

That being said, the bonus issue ratio is 1:1.

Gujarat Ambuja Exports Limited (GAEL) is principally involved in the manufacturing of Corn Starch Derivatives, soy derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils. Since its incorporation in 1991, GAEL strives to serve the Food, Pharmaceutical, Feed and many other industries with a long-term growth strategy in the Agro-Processing sector.

The company's vision is to be a global leader and one-stop solution for Ingredients.

MK Proteins Bonus Issue:

Yet another edible oils maker, MK Proteins will also turn ex-bonus on March 15, which is also the record date to ascertain the eligibility of shareholders entitlement of Bonus Equity Shares of the Company in the ratio of 2:1 i.e. 2 (Two) Equity Shares for every 1 (One) Equity Shares having a face value of Re. 1/-.

Hence, the stock split ratio is 2:1.

Unlike GAEL, MK Proteins' share price has seen significant correction since last year. YTD, the stock has fallen by 37%, and in a year, the downside is nearly 30%.

On BSE, MK Proteins' share price ended at Rs 45.02 apiece, down by 1.6% with a market cap of Rs 563.31 crore.

M K Proteins is a manufacturing and trading organization having its production/refining plant of Edible Oils. The company is focused on the production of the highest quality of edible oil. Its refinery is completely mechanised and today we produce rice bran oil, sunflower oil etc with protein content, with controlled fibre free from oil residue, ash and sand & silica. This is possible only through sustained levels of cleaning, storage and monitoring arrangements.

​M.K. Proteins is part of the Shree Ganesh Fats Group, which was established in 1958. Since its inception in 2012, M.K. Proteins has been one of the major contributors to the edible oil industry in North India.